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Giulio C. Zanetti Bangkok,Thailand
Adjunct Professor Loyola University Chicago October 15, 2019
International Consultant
Challenges and Issues Affecting the
Use and Protection of Trademarks by SMEs
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Agenda
Turning challenges into opportunities 1. Creation 2. Protection 3. Using / TM management 4. Creating a brand 5. Commercialize 6. Enforcing
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Question
Why a cotton shirt can be bought for €10 in a market and for €100 in a boutique? Both are produced by same manufacturer in Cambodia …
Answer:
BRANDING
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First challenge/opportunity: CREATION
Compliance with: - Legal requirements - Marketing considerations
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Marketing Considerations
a) The big «easy» to read, write, spell, pronounce … remember b) The big idea (why are you different / better?) c) Colour/s d) Font e) Language (must match the prod., the customers, your brand) f) Interesting forms g) Suitable for all types of media h) No undesired connotations in any relevant country i) Personality
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- NOT Misleading, Descriptive, Generic Contrary
to public order/morality ...
+ Distinctiveness
- NOT conflict with prior signs / «Novelty»
Legal Requirements
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Second challenge /opportunity: ACQUIRE PROTECTION
Registration: - @ Home - In other countries
PRINCIPLE OF TERRITORIALITY
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• A centralized filing mechanism
• A one-stop shop for trademark holders to obtain and maintain trademark protection in export markets
• An option to the national route
• A purely PROCEDURAL treaty
• The domestic legislation of the designated Contracting Parties set the SUBSTANTIVE conditions for protecting a trademark and determine the rights which result from protection
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WIPO Madrid system
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Many Offices for filing
Many application forms
Many languages
Many currencies
Many registrations
Many renewals
Many individual
modifications
Foreign attorney needed
from beginning in ALL
countries
National Route
One Office for filing
One single application
form
One language (E/F/S)
One currency (Swiss
francs)
One international
registration
One renewal
One modification
Foreign attorney needed
only in case of refusal
Madrid Route
Madrid v. National systems
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Third challenge/opportunity: USE OF THE MARK
- If not used: waste of opportunities
- Avoid forfeiture for lack of use (use it or loose it)
- Avoid vulgarization: - Never as a verb / noun - Use with generic term
- Enhance Secondary meaning
- Use it in a consistent manner (= as registered)
- Use «TM» or ®
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- Carry out periodical TM AUDIT
- TM valuation
- Securing capitals
Use of Mark (cont) / TM management
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Fourth challenge/opportunity : TRANSFORM IN BRAND
What is BRANDING?
Strategy to promote your strengths
The essence of your business: its personality
Highlighting what makes your prod/serv different
Strategy to generate a set of associations in people’s mind
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Can make your business stand out
Better income / increased sales
Loyalty, credibility and trust by customers
Increased public recognition
Make sales less sensitive to price increase
BRANDING: Why? (ADVANTAGES)
People expect to pay more for branded products
Less sensitive to new competitors / Creates habit
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Trademarks (+ logo)
Industrial Designs
GIs
Marketing / Advertising
Packaging
BRANDING: How? (TOOLS)
Domain names
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1. Amazon 145 Bl €
3. Google 115 Bl €
2. Apple 140 Bl €
5. Facebook 80 Bl €
Most Valuable TMs in 2018
4. Samsung 85 Bl €
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Fifth challenge/opportunity : COMMERCIALIZATION
Licenses
Franchising
JVs
Merchandising
… endless times and all at the same time!!
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Sixth challenge: INFRINGEMENT
Avoid Litigation!!!
• “Create around” or License
• Be your own policeman!
• Other “friendly” agreements
• Cease and Desist letter
• Negotiate an out-of-court attempt
•… money from damages/compensation …
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ACTIONS BEFORE COURT
CIVIL MEASURES
ADMINSTRATIVE MEASURES
CRIMINAL MEASURES
BORDER MEASURES
EX PARTE MEASURES
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KEY MESSAGE
LET’S TURN CHALLENGES INTO OPOPRTUNITIES !!!